A 32 Lancaster Farming Saturday, Deceinbei 20, 2003 (Continued from Page A3O) transferring property between unrelated parties. They usually create a tax obligation (capital gains) for the seller and a debt obligation for the buyer. Some times parents and child are work ing a farm together and provid ing a living for two households. If parents sell this farm to child and the operation continues un changed, the taxes and debt pay ments can sink both families into a cash flow crisis. Discounted sales are often used by parents in sales to a child. The difference between FMV and the sale price is consid ered by IRS to be a gift. Just make sure that your accountant has enough aspirin to sort out this basis headache! Sale with life estate sometimes used by mother to sell to son gives her the right to live in the house for the rest of her life. The rent value of the house for the life expectancy of mother should be capitalized and the selling price reduced by that amount. Like-kind exchange is popular in our region, as it postpones the tax obligation of selling highly appreciated real estate. The tax Agricultural Generators I Detroit Diesel Spectrum KJkyroL'ipHj Automatic PTO Generators L P Gas, Diesel 25 to 135 KW Units Natural Gas Generators In Stock' 5 to 2,000 KW Service - Rental - New & Used Units In Stock! WjK.MWMW SVSTSMS l J o\H'i (rent-ration S\stems Specialists 330 Founderwhite Road, Lebanon, PA 17042 Call Leonard Martin 717-273-4544 Fax: 717-273-5186 website www pennpowersystems com e-mail lmartin@pennpowersystems.com with Icmlirl Zene™ It is not too late to start off the New Year with a new cow comfort system from Petersheim's Cow Mattresses. , The Comfort Zone Tie Stall I he tic stall designed The only cow mattress that imitates the comfort of natural pasture v\ ith cow comfort in mind. PitStUltiMdt® Petersheim’s Cow Mattresses 117 Christiana Pihe, Christiana, PA 17509 610-593-2242 basis of the original property transfers to that portion of the property received in equal ex change value. Gifts given during lifetime can transfer real property. The value of the gift above the annual ex clusion ($ll,OOO per person) will be deducted from the Unified Credit in the estate of the do nor(s). The important thing to re member is that the basis of the property transfers with the gift. Wills transfer all those things owned by a person at death. What is probated will depend on title. Federal estate taxes appear to be a diminishing problem, but Pennsylvania’s inheritance taxes are assessed on all estates. Wills provide an opportunity for fami lies to get a stepped-up basis in property. Estate taxes are chang ing regularly, so wills should be reviewed and revised every three years or when there is a signifi cant change in laws or family cir cumstances. Trusts can be created to own property during life or after death. They may be useful vehi cles or an unnecessary complica tion - depending on your circum stances. Weigh the advice of ** Cine in the New year trusted CPAs and attorneys on both sides of the argument before you create these things. Remem ber that with a living trust your job is not completed when the documents are paid for. All prop erty to be transferred through the trust - and that means everything you own if you are to avoid pro bate - must be titled to the trust. Otherwise you paid a lot of money for a sheaf of useless doc uments. Intestate law is the will the state has written to transfer your property at death if you die with no will to be found. It is irre sponsible of any property owner to put his/her loved ones through the unnecessary hassles of this form of estate settlement. Conclusion These comments from a man agement perspective are not in tended to be legal advice, nor are they intended to provide you with all the tax implications of every real estate transfer situa tion. It is vital that everyone planning the transfer of any property use the services and ad vice of a competent accountant and an attorney qualified in real estate and also estate planning processes. Keep the family members up dated on your intentions while you explore the transfer options. Make sure that heirs are willing to shoulder the responsibilities and obligations of real estate ownership before you thrust it upon them. An important obliga tion of real estate ownership is to plan for its disposition in such a way that it will not create dis putes or hardships among the successors. -I Update On PDA’s Ag Education Initiative Dr. MeeCee Baker Agriculture Education Coordinator Agriculture Secretary Dennis C Wolff has made agricultural educa tion a priority for the Department of Agriculture (PDA). Since unveiling the plan, PDA has already inspired several efforts that encompass agri cultural education activities targeted to school-aged and life-long learners as well as those familiar with agri culture and the non-agriculturally literate public. Anchoring Wolff s agricultural ed ucation initiative, the Department launched a new website, www.mar ketplaceforthemind.com in late Oc tober. The site serves not only teach ers and students, but also all citizens of the Commonwealth. Teachers can search the website to find curriculum materials to support state academic standards, grants to fund school based projects, and traveling exhi bits, which can bring technical ex pertise to classrooms. The site also offers listings of higher education in stitutions conferring agricultural de grees and scholarships to help stu dents defray tuition costs. Consumers can also review a list of farmers markets offering fresh pro duce, while families can find a grow er that allows “cut your own” holi day trees. Moreover, the website can help farmers identify low interest loan programs such as the Machin ery and Equipment Loan Fun (MELF). I encourage you to visit the website to sample the myriad of in formation available. As part of the initiative, Secretary Wolff has promised to teach lessons about agriculture on a monthly basis. His efforts in November result ed in the teaching of more than 200 students statewide. On Dec. 19, Wolff brought technical information MeeCee Baker concerning embryo transfer from his home farm in Columbia County to an advanced biology class at Indian Valley High School in Lewistown. He also met with Larry Welshans, an Indian Valley Middle School Teach er, who developed a junior high sci ence class rooted in agricultural ap plication. Wolff wrapped up his day in Lewistown by reading a story about milk production to elementary students at the Sacred Heart School. Secretary Wolff promises to con tinue to focus on his agricultural ed ucation initiative in 2004 by expand ing the educational emphasis of the Pennsylvania Farm Show and spon soring agricultural education work shops in the seven Pennsylvania De partment of Agriculture regions during February and March. For more information about PDA’s Agri cultural Education Initiative, contact Dr. MeeCee Baker at c-meba ker@state.pa.us or (717) 705-9512.
Significant historical Pennsylvania newspapers